Emily Flippen

Up next, we're digging into what caused Robinhood's shocking outperformance this year, and if there's something beyond a meme craze happening.

Stick with us.

Welcome back to Motley Fool Money.

I want to take us back in time to 2021.

Robinhood, which is the app-based trading platform aimed at younger adults, has just gone public.

The business has a short period of relative success before concerns over things like options trading and privacy led to shares selling off.

And for a couple of years, the platform didn't really do much.

But at the turn of 2024, it seems like this perfect storm has led to a massive jump in operating profits, right?

Crypto and options trading volumes came back.

Higher interest rates led to strong high margin revenue.

And management went into cost-cutting mode, bringing operating expenses down by nearly 50%.

Shares have since roared.

But in 2025, it seems like shares have

continued to roar after rising over 200% in 2024.

Shares are up another 250% in 2025 alone.

Jeff, when I look at this performance versus the fundamentals, there's some part of me that can make sense of it.

But on the other hand, it's still priced incredibly loftily at nearly 30 times board sales.

So is there something here beyond just a meme stock craze?

It certainly performed better than I expected.

I will say, though, as much as I've written off this company incorrectly over the course of the past couple of years, I think buying today is buying at peak hype, so to speak.